All Forum Posts by: Ben Vonderwahl

Hello Everyone,

I am currently in the process of purchasing about 4 properties using debt secured with promissory notes (lender is my father and grandmother). I've resorted to this strategy after being turned down by traditional lenders due to my lack of credit history (current score 702). I'm considering having these loans handled by a loan servicing company that reports to the credit bureaus in order to build credit and get my score into a place where I can refinance at lower rates (family rate is 10% APR). However the properties still cash flow exceptionally well at 10%. So, if the loan servicer reports these notes to the credit bureaus will these loans count as 4 out of the 10 possible loans I can get with traditional financing? If so, I'd rather just pay the 10% and use my 10 "soft loans" for other properties. In other words what are the pros and cons to having my family loans reported to the credit bureaus?

Thanks,

Ben  

Thanks for the welcome everyone! And you're right Bill, us puebloans need to get something going!

And Jeff, unfortunately I do not know if a lender would be able to sniff out my private borrowing or not and even if they did would it affect their approval decision. For one thing I will have mortgage interest deductions on my tax return and that would definitely tip a lender off.

And Jason that's excellent would you mind giving that Credit Union a little free advertising and point me in the right direction? And as far as talking shop about Pueblo I'm up for it anytime. In fact I'm remodeling a double wide out in P West right now if you'd like to come see what the manufactured home game is all about! 

Hey Lee! I think the number 4 has just been permanently engrained in my mind from my dad's complaints about the restrictions of the past few years. Good to know that it is ten now. 

Hello Everyone,

A few weeks ago I fell in love with the bigger pockets podcast so I decided I had to come make a profile! My name is Ben and I have been investing in real estate since I was 16 if you can believe that. My Dad is one of the most successful (both financially and in his personal life) people that I know. And I got to hang out with him for 18 years straight! Therefore he's rubbed off on me a little. Anyways he is a successful real estate investor in the Denver, CO metro area. I am currently 20 years old and living in Pueblo, CO where I am trying to build an empire of my own. I have dealt exclusively in manufactured/mobile/trailer housing mostly due to what I consider to be excellent cash flow and low pricing which makes it easy for a guy like me to get into. I have a myriad of business questions that I will be posting to the forums in search of answers. Stay tuned and thanks ahead of time!

Hello Everyone,

I am currently looking to expand my real estate empire haha. I currently own 8 manufactured/mobile homes in Pueblo, CO. I have applied for a HELOC against my primary residence but was denied due to lack of credit history (all of my properties were paid for in cash). My family is ready to lend me money at 10% interest in order for me to continue growing. The prospective properties are priced around $30,000 to $50,000 and will easily service the debt and likely cash flow $300-$400 a month. However, I am concerned that if I have multiple promissory notes owed to my family I will not be allowed to take any conventional mortgages in the future due to the current maximum of four mortgages allowed at a brick and mortar bank. Are promissory notes owed to private individuals counted towards that mortgage limit? My goal is to exhaust my family funds over the next couple years and by then have built an excellent credit score and income (: so that I would at that point be able to switch over to conventional financing for future expansion. Could be way off here and any direction would be appreciated!